Electrolyte Powder = $200M Business

You would probably shrug if I told you that selling flavored electrolyte powder could turn into a $200 million business.

After all, hydration powders have been around for decades.

Yet, Liquid IV did just that.

They took something as basic as an electrolyte mix, something you could find at cheap prices at any pharmacy, and turned it into a lifestyle brand that athletes, travelers, and even celebrities swear by.

They didn’t invent a new formula or create groundbreaking science.

Instead, they repositioned hydration as a must-have for high performers, health-conscious people, and anyone who wants to feel better faster.

So, how did they turn a simple powder into a premium, must-have product?

The Big Idea:

Selling a Commodity as a Necessity

If you think about hydration powders, the first thing that might come to mind is Gatorade, Pedialyte, or even basic sports drinks.

These products existed long before Liquid IV, targeting athletes or people recovering from dehydration. But Liquid IV flipped the script. Instead of focusing only on hydration after a workout or illness, they made it part of an everyday routine.

They positioned their product as the go-to hydration solution for busy professionals, frequent travelers, and anyone who wants to boost energy and feel their best.

Let's say they weren’t just selling electrolytes. They sold better mornings, intense workouts, faster recovery, and a healthier lifestyle.

And it worked.

By 2020, Liquid IV was doing over $100M in revenue, and Unilever acquired the company in a deal estimated to be around $200 million.

Not bad for a simple hydration powder, right?

But what differentiated them from the dozens of other hydration products?

The answer is simple - Positioning, branding, and storytelling.

Behind the Magic:

Turning a Simple Product into a Lifestyle Brand

Liquid IV didn’t win by inventing a revolutionary product.

They won by changing consumer perception. They took a boring, low-cost commodity, and turned it into a premium, must-have lifestyle product.

They didn’t focus on just selling a drink mix. They focused on selling a better life.

This is where most brands get it wrong.

They think they need to create something new. But in reality, the wins we all wonder at often come from repositioning something familiar that makes people care more.

So, how did the Liquid IV do it?

1. They didn’t sell a product but a transformation

Most hydration brands talk about what they have - electrolytes, sodium, potassium, etc. But Liquid IV focuses on what you become after using it.

For example:

• Gatorade/Pedialyte Say: Replenish electrolytes.

• Liquid IV Say: Feel better, faster. Get more out of life.

They made hydration feel essential, not optional.

Their messaging revolved around:

• Energy (For people who feel sluggish in the morning)

• Recovery (For travelers, partygoers, or the sleep-deprived)

• Performance (For athletes, entrepreneurs, and high achievers)

Instead of saying, Here’s an electrolyte mix, they made the conversation about how dehydration affects performance, mood, and energy levels.

The best example is their About Us page:

And people care more about all these things.

See, their messaging wasn’t about ingredients. It was about outcomes. By shifting the conversation to the effects of dehydration, they made their product feel like an everyday essential, not just something you take when you are sick or exhausted.

How you can apply this?

Instead of focusing on what your product does, ask: What transformation does this enable? What happens when someone uses this consistently? How does their life improve? Sell the new version of your customer, not just your product.

2. They created a new mechanism

If you strip it down, Liquid IV’s formula isn’t groundbreaking. But the brilliant part is how they branded their technology as Cellular Transport Technology (CTT®).

It sounds like advanced science, but CTT is just a mix of sodium, glucose, and potassium, something scientists have understood for decades. But the branding around it made it feel unique and special.

• It sounds scientific and premium.

• It gives customers a reason to believe their product works better than competitors.

• It creates a mental shortcut - people assume it's more effective because it has a proprietary name.

This wasn’t just branding fluff. It became a selling point that made Liquid IV feel different from other electrolyte powders. You see! That tiny shift gave customers a reason to choose Liquid IV over other hydration powders.

How you can apply this?

Even if your product isn’t unique, you can: Name your process or formula. (Think Hydration Multiplier vs. Electrolyte Mix), emphasize a key differentiator.

(Frame even a little tweak as a big deal.), and give customers a reason to believe your product is superior. This makes your product stand out in a crowded market.

3. They made hydration a daily habit

Most electrolyte drinks are reactionary. You drink them after you sweat, get sick, or have a hangover. But Liquid IV took it from another angle:

They made hydration a proactive, daily habit.

Their marketing positioned Liquid IV as something you should drink:

• In the morning (to start your day right)

• Before a workout (for peak performance)

• During travel (to avoid jet lag and fatigue)

• After drinking alcohol (to prevent hangovers)

They expanded the use cases beyond traditional sports hydration, making their product relevant to a larger audience. You should check out this page:

Suddenly, everyday people, office workers, travelers, and wellness enthusiasts, had a reason to drink Liquid IV regularly, not occasionally.

And the best part? When people use your product daily, they buy more of it. This small tweak made all the difference a brand needs to stand ahead shining.

How you can apply this?

Can you reposition your product as an everyday habit instead of an occasional purchase? Maybe through education, subscription models, or multiple use cases?

Think beyond your product’s primary use, find various use cases, and build a ritual. When people make your product part of their routine, they buy more and stay longer.

4. They used social proof and influencers

Liquid IV was everywhere. Athletes, celebrities, and influencers were seen using it and made it feel like a must-have product. And Liquid IV established on this.

Instead of traditional advertising, they used peer influence.

• Athletes promoted it as a performance booster.

• Celebrities & wellness influencers used it for energy and travel recovery.

• Everyday users shared it as a better way to hydrate.

Seeing real people (and celebrities) use Liquid IV made others want to try it.

This strategy created social proof at scale. Big names like Justin Bieber, Kendall Jenner, and professional athletes posted about it. Because hydration is a universal need, the product had broad appeal across different audiences.

Check out this post by Justin Beiber:

And check out this read:

This worked well for several reasons.

• People trust recommendations over ads. Seeing someone they follow using Liquid IV made it feel credible.

• It felt organic. Instead of forcing ads, Liquid IV became a part of people’s daily lives.

• It created FOMO. If everyone from Justin Bieber to fitness influencers drank it, you would feel like you should try it, too.

How you can apply this?

Find influencers who use products like yours and encourage UGC through them because people trust real customers more than brands.

Then, use a referral program to turn existing buyers into brand ambassadors. This creates word-of-mouth momentum, which is far more powerful than paid ads.

5. They used premium branding to charge more

Electrolyte powders are cheap. You can buy generic versions for a fraction of the price. But Liquid IV didn’t look or feel like a cheap product.

• Packaging: Clean, bold, and premium-looking (unlike traditional sports drinks).

• Messaging: Focused on lifestyle benefits, not just hydration.

• Pricing: More expensive than other hydration powders (but framed as a health investment).

For example, loot at how premium their packaging is:

By making their product feel high-end, they positioned themselves next to high-end wellness brands like Athletic Greens and Oura Ring instead of competing with low-cost hydration powders.

Overall, they built a brand people were proud to buy and share. And that's because a strong brand lets you charge more and build loyalty. Customers feel like they are getting an experience, not just a product.

How you can apply this?

Invest in design because premium branding lets you charge premium prices.

Then, make your product feel like a movement. (People want to belong to something bigger.), and sell status, not just function. When people buy Apple, they don’t just buy tech. They buy identity. Can your brand create a similar feeling?

Where It Fits:

Making It Work For You

Liquid IV’s success was about repositioning an everyday product in a way that made it feel essential. And the best part? You can do this too.

• Find a profound pain point. Instead of just selling a feature, sell the massive transformation your product enables.

• Create a unique hook. Whether a unique name, mechanism, or process, give customers a reason to choose your product over competitors.

• Build a brand that feels premium. Even if your product is simple, great design, messaging, and packaging can make it feel like a must-have.

• Leverage influencers and community marketing. People trust recommendations more than ads. Find the voices that matter in your industry.

• Expand your distribution strategically. Don’t just rely on one channel. Think about where your audience shops and how you can show up there.

Liquid IV turned a simple product into a $200M brand by changing how people perceived it. And that’s a strategy that any founder can use.

Think of the time when our case studies used to be different.

So, what’s one thing you can reposition in your business today?

Resources For You

Templates: Struggling to create high-convertin g DTC ads? Get 60+ proven DTC ad templates used by top brands. Plug, tweak, and launch winning ads instantly.

Books:

• Building a StoryBrand by Donald Miller: This book provides a framework for clarifying your brand message, ensuring customers understand and connect with your product.

• Play Bigger by Al Ramadan, Dave Peterson, and Christopher Lochhead: This book delves into "category design," teaching how to create and dominate new market categories.

Podcast:

• The Brand Builder Podcast: Features interviews with founders who have successfully built brands through innovative storytelling and positioning.

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